H.B. No. 3399
AN ACT
relating to the requirements for grant programs funded through the
Texas emissions reduction plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 386.104, Health and Safety Code, is
amended by adding Subsections (i), (j), (k), (l), and (m) to read as
follows:
(i) If the commission determines that a heavy-duty motor
vehicle or engine under this chapter must be decommissioned, the
commission shall require the decommissioning to be carried out by
crushing the vehicle, by making a hole in the engine block and
permanently destroying the frame of the vehicle, or by another
method approved by the commission that permanently removes the
vehicle from operation in this state. The commission shall provide
a means for an applicant to propose an alternative method for
complying with the requirements of this subsection. The commission
shall enforce the requirements of this subsection.
(j) The executive director shall waive any eligibility
requirements established under this section on a finding of good
cause, which may include a waiver for short lapses in registration
or operation attributable to economic conditions, seasonal work, or
other circumstances.
(k) The commission shall consider an application under this
chapter for the replacement of a vehicle that has been owned,
leased, or otherwise commercially financed by the applicant. If
the commission determines that a heavy-duty motor vehicle or engine
that is leased or otherwise commercially financed must be
decommissioned, the commission shall ensure that the applicant has
a legal right to decommission the vehicle or engine before awarding
a grant to the applicant.
(l) The commission shall consider an application for a
vehicle replacement or a fleet expansion for a project with an
activity life of five years or more, or 400,000 miles, whichever is
earlier.
(m) The commission shall provide a form that minimizes, to
the maximum extent possible, the amount of paperwork required.
SECTION 2. Section 391.002, Health and Safety Code, as
added by Chapter 1232 (S.B. 1759), Acts of the 81st Legislature,
Regular Session, 2009, is amended by amending Subsection (b) and
adding Subsection (c) to read as follows:
(b) An entity that places 20 [25] or more qualifying
vehicles in service for use entirely in this state during a calendar
year is eligible to participate in the program.
(c) Notwithstanding Subsection (b), an entity that submits
a grant application for 20 or more qualifying vehicles is eligible
to participate in the program even if the commission denies
approval for one or more of the vehicles during the application
process.
SECTION 3. Section 391.004, Health and Safety Code, as
added by Chapter 1232 (S.B. 1759), Acts of the 81st Legislature,
Regular Session, 2009, is amended by amending Subsection (a) and
adding Subsection (d) to read as follows:
(a) An entity operating in this state that operates a fleet
of at least 75 [100] vehicles may apply for and receive a grant
under the program.
(d) The commission shall minimize, to the maximum extent
possible, the amount of paperwork required for an application. An
applicant may be required to submit a photograph or other
documentation of a vehicle identification number, registration
information, inspection information, tire condition, or engine
block identification only if the photograph or documentation is
requested by the commission after the commission has decided to
award a grant to the applicant under this chapter.
SECTION 4. Section 391.005, Health and Safety Code, as
added by Chapter 1232 (S.B. 1759), Acts of the 81st Legislature,
Regular Session, 2009, is amended by amending Subsections (b), (c),
(d), and (f) and adding Subsection (i) to read as follows:
(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,
leased, or otherwise commercially financed and 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 until the earlier of the fifth
anniversary of [for at least five years from] the date of
reimbursement of the grant-funded expenses or until the date the
vehicle has been in operation for 400,000 miles after the date of
reimbursement. 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 contract [ownership and usage] requirements,
including submission of reports on at least an annual basis, or more
frequently as determined by the commission.
(f) A vehicle or engine replaced under this program must be
rendered permanently inoperable by crushing the vehicle, by [or]
making a hole in the engine block and permanently destroying the
frame of the vehicle, or by another method approved by the
commission that permanently removes the vehicle from operation in
this state. The commission shall provide a means for an applicant to
propose an alternative method of complying with the requirements of
this subsection. [The commission shall establish criteria for
ensuring the permanent destruction of the engine and vehicle.] The
commission shall [monitor and] enforce the [destruction]
requirements of this subsection.
(i) The executive director shall waive the requirements of
Subsection (b)(2)(A) on a finding of good cause, which may include a
waiver for short lapses in registration or operation attributable
to economic conditions, seasonal work, or other circumstances.
SECTION 5. Sections 386.104, 391.002, 391.004, and 391.005,
Health and Safety Code, as amended by this Act, apply only to a
grant application submitted to the Texas Commission on
Environmental Quality on or after the effective date of this Act. A
grant application submitted to the Texas Commission on
Environmental Quality before the effective date of this Act is
governed by the law in effect on the date the application was
submitted, and the former law is continued in effect for that
purpose.
SECTION 6. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3399 was passed by the House on May
11, 2011, by the following vote: Yeas 148, Nays 1, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3399 was passed by the Senate on May
25, 2011, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor