Texas 2009 - 81st Regular

Texas Senate Bill SB1759 Compare Versions

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1	1	S.B. No. 1759
2	2
3	3
4	4	AN ACT
5	5	relating to the extended registration of a commercial fleet of
6	6	motor vehicles.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 502.001, Transportation Code, is amended
9	9	by adding Subdivision (1-a) to read as follows:
10	10	(1-a) "Commercial fleet" means a group of at least 25
11	11	nonapportioned motor vehicles owned by a corporation, limited or
12	12	general partnership, limited liability company, or other business
13	13	entity and used for the business purposes of that entity.
14	14	SECTION 2. Subchapter A, Chapter 502, Transportation Code,
15	15	is amended by adding Section 502.0023 to read as follows:
16	16	Sec. 502.0023. EXTENDED REGISTRATION OF COMMERCIAL FLEET
17	17	MOTOR VEHICLES. (a) Notwithstanding Section 502.158(c), the
18	18	department shall develop and implement a system of registration to
19	19	allow an owner of a commercial fleet to register the motor vehicles
20	20	in the commercial fleet for an extended registration period of not
21	21	less than one year or more than eight years. The owner may select
22	22	the number of years for registration under this section within that
23	23	range and register the commercial fleet for that period. Payment
24	24	for all registration fees for the entire registration period
25	25	selected is due at the time of registration.
26	26	(b) A system of extended registration under this section
27	27	must allow the owner of a commercial fleet to register:
28	28	(1) an entire commercial fleet in the county of the
29	29	owner's residence or principal place of business; or
30	30	(2) the motor vehicles in a commercial fleet that are
31	31	operated most regularly in the same county.
32	32	(c) In addition to the registration fees prescribed by
33	33	Subchapter D, an owner registering a commercial fleet under this
34	34	section shall pay:
35	35	(1) an annual commercial fleet registration fee of $10
36	36	per motor vehicle in the fleet; and
37	37	(2) except as provided by Subsection (e), a one-time
38	38	license plate manufacturing fee of $1.50 for each fleet motor
39	39	vehicle license plate.
40	40	(d) A license plate issued under this section:
41	41	(1) may, on request of the owner, include the name or
42	42	logo of the business entity that owns the vehicle;
43	43	(2) must include the expiration date of the
44	44	registration period; and
45	45	(3) does not require an annual registration insignia
46	46	to be valid.
47	47	(e) In addition to all other applicable registration fees,
48	48	an owner registering a commercial fleet under this section shall
49	49	pay a one-time license plate manufacturing fee of $8 for each set of
50	50	plates issued that includes on the legend the name or logo of the
51	51	business entity that owns the vehicle instead of the fee imposed by
52	52	Subsection (c)(2).
53	53	(f) If a motor vehicle registered under this section has a
54	54	gross weight in excess of 10,000 pounds, the department shall also
55	55	issue a registration card for the vehicle that is valid for the
56	56	selected registration period.
57	57	(g) The department shall adopt rules to implement this
58	58	section, including rules on suspension from the commercial fleet
59	59	program for failure to comply with this section or rules adopted
60	60	under this section.
61	61	(h) The department and the counties in their budgeting
62	62	processes shall consider any temporary increases and resulting
63	63	decreases in revenue that will result from the use of the process
64	64	provided under this section.
65	65	SECTION 3. Subsection (b), Section 501.0234,
66	66	Transportation Code, is amended to read as follows:
67	67	(b) This section does not apply to a motor vehicle:
68	68	(1) that has been declared a total loss by an insurance
69	69	company in the settlement or adjustment of a claim;
70	70	(2) for which the certificate of title has been
71	71	surrendered in exchange for:
72	72	(A) a salvage vehicle title issued under this
73	73	chapter;
74	74	(B) a nonrepairable vehicle title issued under
75	75	this chapter;
76	76	(C) a certificate of authority issued under
77	77	Subchapter D, Chapter 683; or
78	78	(D) an ownership document issued by another state
79	79	that is comparable to a document described by Paragraphs (A)-(C);
80	80	[or]
81	81	(3) with a gross weight in excess of 11,000 pounds; or
82	82	(4) purchased by a commercial fleet buyer who is a
83	83	full-service deputy under Section 502.114 and who utilizes the
84	84	dealer title application process developed to provide a method to
85	85	submit title transactions to the county in which the commercial
86	86	fleet buyer is a full-service deputy.
87	87	SECTION 4. Section 386.252, Health and Safety Code, is
88	88	amended by amending Subsection (a) and adding Subsection (d) to
89	89	read as follows:
90	90	(a) Money in the fund may be used only to implement and
91	91	administer programs established under the plan and shall be
92	92	allocated as follows:
93	93	(1) for the diesel emissions reduction incentive
94	94	program, 87.5 percent of the money in the fund, of which not more
95	95	than four percent may be used for the clean school bus program, five
96	96	percent shall be used for the clean fleet program, and not more than
97	97	10 percent may be used for on-road diesel purchase or lease
98	98	incentives;
99	99	(2) for the new technology research and development
100	100	program, 9.5 percent of the money in the fund, of which up to
101	101	$250,000 is allocated for administration, up to $200,000 is
102	102	allocated for a health effects study, $500,000 is to be deposited in
103	103	the state treasury to the credit of the clean air account created
104	104	under Section 382.0622 to supplement funding for air quality
105	105	planning activities in affected counties, not less than 20 percent
106	106	is to be allocated each year to support research related to air
107	107	quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
108	108	nonattainment areas by a nonprofit organization based in Houston of
109	109	which $216,000 each year shall be contracted to the Energy Systems
110	110	Laboratory at the Texas Engineering Experiment Station for the
111	111	development and annual calculation of creditable statewide
112	112	emissions reductions obtained through wind and other renewable
113	113	energy resources for the State Implementation Plan, and the balance
114	114	is to be allocated each year to a nonprofit organization or an
115	115	institution of higher education based in Houston to be used to
116	116	implement and administer the new technology research and
117	117	development program under a contract with the commission for the
118	118	purpose of identifying, testing, and evaluating new
119	119	emissions-reducing technologies with potential for
120	120	commercialization in this state and to facilitate their
121	121	certification or verification; and
122	122	(3) for administrative costs incurred by the
123	123	commission and the laboratory, three percent of the money in the
124	124	fund.
125	125	(d) The commission may allocate unexpended money designated
126	126	for the clean fleet program to other programs described under
127	127	Subsection (a) after the commission allocates money to recipients
128	128	under the clean fleet program.
129	129	SECTION 5. Subtitle C, Title 5, Health and Safety Code, is
130	130	amended by adding Chapter 391 to read as follows:
131	131	CHAPTER 391. TEXAS CLEAN FLEET PROGRAM
132	132	Sec. 391.001. DEFINITIONS. In this chapter:
133	133	(1) "Alternative fuel" means a fuel other than
134	134	gasoline or diesel fuel, including electricity, compressed natural
135	135	gas, liquified natural gas, hydrogen, propane, or a mixture of
136	136	fuels containing at least 85 percent methanol by volume.
137	137	(2) "Commission" means the Texas Commission on
138	138	Environmental Quality.
139	139	(3) "Golf cart" has the meaning assigned by Section
140	140	502.001, Transportation Code.
141	141	(4) "Hybrid vehicle" means a vehicle with at least two
142	142	different energy converters and two different energy storage
143	143	systems on board the vehicle for the purpose of propelling the
144	144	vehicle.
145	145	(5) "Incremental cost" has the meaning assigned by
146	146	Section 386.001.
147	147	(6) "Light-duty motor vehicle" has the meaning
148	148	assigned by Section 386.151.
149	149	(7) "Motor vehicle" has the meaning assigned by
150	150	Section 386.151.
151	151	(8) "Neighborhood electric vehicle" means a motor
152	152	vehicle that:
153	153	(A) is originally manufactured to meet, and does
154	154	meet, the equipment requirements and safety standards established
155	155	for "low-speed vehicles" in Federal Motor Vehicle Safety Standard
156	156	No. 500 (49 C.F.R. Section 571.500);
157	157	(B) is a slow-moving vehicle, as defined by
158	158	Section 547.001, Transportation Code, that is able to attain a
159	159	speed of more than 20 miles per hour but not more than 25 miles per
160	160	hour in one mile on a paved, level surface;
161	161	(C) is a four-wheeled motor vehicle;
162	162	(D) is powered by electricity or alternative
163	163	power sources;
164	164	(E) has a gross vehicle weight rating of less
165	165	than 3,000 pounds; and
166	166	(F) is not a golf cart.
167	167	(9) "Program" means the Texas clean fleet program
168	168	established under this chapter.
169	169	Sec. 391.002. PROGRAM. (a) The commission shall establish
170	170	and administer the Texas clean fleet program to encourage a person
171	171	that has a fleet of diesel-powered vehicles to replace them with
172	172	alternative fuel or hybrid vehicles. Under the program, the
173	173	commission shall provide grants for eligible projects to offset the
174	174	incremental cost of projects for fleet owners.
175	175	(b) An entity that places 25 or more qualifying vehicles in
176	176	service for use entirely in this state during a calendar year is
177	177	eligible to participate in the program.
178	178	Sec. 391.003. QUALIFYING VEHICLES. (a) A vehicle is a
179	179	qualifying vehicle that may be considered for a grant under the
180	180	program if during the calendar year the entity purchases a new
181	181	on-road vehicle that:
182	182	(1) is certified to current federal emissions
183	183	standards;
184	184	(2) replaces a diesel-powered on-road vehicle of the
185	185	same weight classification and use; and
186	186	(3) is a hybrid vehicle or fueled by an alternative
187	187	fuel.
188	188	(b) A vehicle is not a qualifying vehicle if the vehicle:
189	189	(1) is a neighborhood electric vehicle;
190	190	(2) has been used as a qualifying vehicle to qualify
191	191	for a grant under this chapter for a previous reporting period or by
192	192	another entity; or
193	193	(3) has qualified for a similar grant or tax credit in
194	194	another jurisdiction.
195	195	Sec. 391.004. APPLICATION FOR GRANT. (a) An entity
196	196	operating in this state that operates a fleet of at least 100
197	197	vehicles may apply for and receive a grant under the program.
198	198	(b) The commission may adopt guidelines to allow a regional
199	199	planning commission, council of governments, or similar regional
200	200	planning agency created under Chapter 391, Local Government Code,
201	201	or a private nonprofit organization to apply for and receive a grant
202	202	to improve the ability of the program to achieve its goals.
203	203	(c) An application for a grant under this chapter must be
204	204	made on a form provided by the commission and must contain the
205	205	information required by the commission.
206	206	Sec. 391.005. ELIGIBILITY OF PROJECTS FOR GRANTS. (a) The
207	207	commission by rule shall establish criteria for prioritizing
208	208	projects eligible to receive grants under this chapter. The
209	209	commission shall review and revise the criteria as appropriate.
210	210	(b) To be eligible for a grant under the program, a project
211	211	must:
212	212	(1) result in a reduction in emissions of nitrogen
213	213	oxides or other pollutants, as established by the commission, of at
214	214	least 25 percent, based on:
215	215	(A) the baseline emission level set by the
216	216	commission under Subsection (g); and
217	217	(B) the certified emission rate of the new
218	218	vehicle; and
219	219	(2) replace a vehicle that:
220	220	(A) is an on-road vehicle that has been owned,
221	221	registered, and operated by the applicant in Texas for at least the
222	222	two years immediately preceding the submission of a grant
223	223	application;
224	224	(B) satisfies any minimum average annual mileage
225	225	or fuel usage requirements established by the commission;
226	226	(C) satisfies any minimum percentage of annual
227	227	usage requirements established by the commission; and
228	228	(D) is in operating condition and has at least
229	229	two years of remaining useful life, as determined in accordance
230	230	with criteria established by the commission.
231	231	(c) As a condition of receiving a grant, the qualifying
232	232	vehicle must be continuously owned, registered, and operated in the
233	233	state by the grant recipient for at least five years from the date
234	234	of reimbursement of the grant-funded expenses. Not less than 75
235	235	percent of the annual use of the qualifying vehicle, either mileage
236	236	or fuel use as determined by the commission, must occur in the
237	237	state.
238	238	(d) The commission shall include and enforce the usage
239	239	provisions in the grant contracts. The commission shall monitor
240	240	compliance with the ownership and usage requirements, including
241	241	submission of reports on at least an annual basis, or more
242	242	frequently as determined by the commission.
243	243	(e) The commission by contract may require the return of all
244	244	or a portion of grant funds for a grant recipient's noncompliance
245	245	with the usage and percentage of use requirements under this
246	246	section.
247	247	(f) A vehicle or engine replaced under this program must be
248	248	rendered permanently inoperable by crushing the vehicle or making a
249	249	hole in the engine block and permanently destroying the frame of the
250	250	vehicle. The commission shall establish criteria for ensuring the
251	251	permanent destruction of the engine and vehicle. The commission
252	252	shall monitor and enforce the destruction requirements.
253	253	(g) The commission shall establish baseline emission levels
254	254	for emissions of nitrogen oxides for on-road vehicles being
255	255	replaced. The commission may consider and establish baseline
256	256	emission rates for additional pollutants of concern, as determined
257	257	by the commission.
258	258	(h) Mileage requirements established by the commission
259	259	under Subsection (b)(2)(B) may differ by vehicle weight categories
260	260	and type of use.
261	261	Sec. 391.006. RESTRICTION ON USE OF GRANT. A recipient of a
262	262	grant under this chapter shall use the grant to pay the incremental
263	263	costs of the project for which the grant is made, which may include
264	264	the initial cost of the alternative fuel vehicle and the reasonable
265	265	and necessary expenses incurred for the labor needed to install
266	266	emissions-reducing equipment. The recipient may not use the grant
267	267	to pay the recipient's administrative expenses.
268	268	Sec. 391.007. AMOUNT OF GRANT. (a) The amount the
269	269	commission shall award for each vehicle being replaced is:
270	270	(1) 80 percent of the incremental cost for replacement
271	271	of a heavy-duty diesel engine:
272	272	(A) manufactured prior to implementation of
273	273	federal or California emission standards; and
274	274	(B) not certified to meet a specific emission
275	275	level by either the United States Environmental Protection Agency
276	276	or the California Air Resources Board;
277	277	(2) 70 percent of the incremental cost for replacement
278	278	of a heavy-duty diesel engine certified to meet the federal
279	279	emission standards applicable to engines manufactured in 1990
280	280	through 1997;
281	281	(3) 60 percent of the incremental cost for replacement
282	282	of a heavy-duty diesel engine certified to meet the federal
283	283	emission standards applicable to engines manufactured in 1998
284	284	through 2003;
285	285	(4) 50 percent of the incremental cost for replacement
286	286	of a heavy-duty diesel engine certified to meet the federal
287	287	emission standards applicable to engines manufactured in 2004 and
288	288	later;
289	289	(5) 80 percent of the incremental cost for replacement
290	290	of a light-duty diesel vehicle:
291	291	(A) manufactured prior to the implementation of
292	292	certification requirements; and
293	293	(B) not certified to meet either mandatory or
294	294	voluntary emission certification standards;
295	295	(6) 70 percent of the incremental cost for replacement
296	296	of a light-duty diesel vehicle certified to meet federal Tier 1
297	297	emission standards phased in between 1994 and 1997; and
298	298	(7) 60 percent of the incremental cost for replacement
299	299	of a light-duty diesel vehicle certified to meet federal Tier 2
300	300	emission standards phased in between 2004 and 2009.
301	301	(b) The commission may revise the standards for determining
302	302	grant amounts, as needed to reflect changes to federal emission
303	303	standards and decisions on pollutants of concern.
304	304	Sec. 391.008. EXPIRATION. This chapter expires August 31,
305	305	2017.
306	306	SECTION 6. (a) In this section:
307	307	(1) "Alternative fuel" means a fuel other than
308	308	gasoline or diesel fuel, including electricity, compressed natural
309	309	gas, liquified natural gas, hydrogen, propane, methanol, or a
310	310	mixture of fuels containing at least 85 percent methanol by volume.
311	311	(2) "Commission" means the Texas Commission on
312	312	Environmental Quality.
313	313	(b) The commission shall conduct an alternative fueling
314	314	facilities study to:
315	315	(1) assess the correlation between the installation of
316	316	fueling facilities in nonattainment areas and the deployment of
317	317	fleet vehicles that use alternative fuels; and
318	318	(2) determine the emissions reductions achieved from
319	319	replacing a diesel-powered engine with an engine utilizing
320	320	alternative fuels.
321	321	(c) From the emissions reductions determined under
322	322	Subsection (b) of this section, the commission shall determine the
323	323	amount of emissions reductions that are fairly attributable to the
324	324	installation of an alternative fuel fueling facility and the
325	325	combustion of the alternative fuel in the vehicles fueled by the
326	326	alternative fuel fueling facility.
327	327	(d) In connection with the study conducted under this
328	328	section, the commission shall seek approval for credit in the state
329	329	implementation plan from the United States Environmental
330	330	Protection Agency for emissions reductions that can be:
331	331	(1) directly attributed to an alternative fuel fueling
332	332	facility; and
333	333	(2) achieved as a consequence of an alternative fuel
334	334	fueling facility encouraging the use of alternatively fueled
335	335	vehicles.
336	336	(e) The commission shall include in the commission's
337	337	biennial report to the legislature the findings of the study
338	338	conducted under this section and the status of the discussions with
339	339	the United States Environmental Protection Agency regarding credit
340	340	for emissions reductions in the state implementation plan which can
341	341	be achieved as a result of the installation of alternative fuel
342	342	fueling facilities.
343	343	(f) This section expires August 31, 2011.
344	344	SECTION 7. Section 502.0022, Transportation Code, is
345	345	repealed.
346	346	SECTION 8. (a) The Texas Department of Transportation
347	347	shall adopt the rules and establish the system required under
348	348	Section 502.0023, Transportation Code, as added by this Act, not
349	349	later than January 1, 2010.
350	350	(b) The Texas Commission on Environmental Quality shall
351	351	adopt rules under Section 391.005, Health and Safety Code, as added
352	352	by this Act, as soon as practicable after the effective date of this
353	353	Act.
354	354	SECTION 9. This Act takes effect September 1, 2009.
355	355	______________________________ ______________________________
356	356	President of the Senate Speaker of the House
357	357	I hereby certify that S.B. No. 1759 passed the Senate on
358	358	April 20, 2009, by the following vote: Yeas 30, Nays 0;
359	359	May 29, 2009, Senate refused to concur in House amendments and
360	360	requested appointment of Conference Committee; May 30, 2009, House
361	361	granted request of the Senate; May 31, 2009, Senate adopted
362	362	Conference Committee Report by the following vote: Yeas 31,
363	363	Nays 0.
364	364	______________________________
365	365	Secretary of the Senate
366	366	I hereby certify that S.B. No. 1759 passed the House, with
367	367	amendments, on May 27, 2009, by the following vote: Yeas 146,
368	368	Nays 2, one present not voting; May 30, 2009, House granted request
369	369	of the Senate for appointment of Conference Committee;
370	370	May 31, 2009, House adopted Conference Committee Report by the
371	371	following vote: Yeas 135, Nays 9, one present not voting.
372	372	______________________________
373	373	Chief Clerk of the House
374	374	Approved:
375	375	______________________________
376	376	Date
377	377	______________________________
378	378	Governor