Texas 2015 - 84th Regular

Texas House Bill HB3518 Compare Versions

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1	1	84R26517 DDT-F
2	2	By: Landgraf, Isaac, Meyer, Darby, Craddick H.B. No. 3518
3	3	Substitute the following for H.B. No. 3518:
4	4	By: Landgraf C.S.H.B. No. 3518
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to alternative fuel fleets of certain governmental
10	10	entities, including funding for motor vehicles, infrastructure,
11	11	and equipment.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Sections 2158.004(a), (b), (c), and (d),
14	14	Government Code, are amended to read as follows:
15	15	(a) A state agency operating a fleet of more than 15
16	16	vehicles, excluding law enforcement and emergency vehicles, may not
17	17	purchase or lease a motor vehicle unless that vehicle uses
18	18	compressed natural gas, liquefied natural gas, liquefied petroleum
19	19	gas, methanol or methanol/gasoline blends of 85 percent or greater,
20	20	ethanol or ethanol/gasoline blends of 85 percent or greater,
21	21	biodiesel or biodiesel/diesel blends of 20 percent or greater,
22	22	hydrogen fuel cells, or electricity, including electricity to power
23	23	a plug-in hybrid motor vehicle.
24	24	(b) A state agency may obtain equipment or refueling
25	25	facilities necessary to operate vehicles using compressed natural
26	26	gas, liquefied natural gas, liquefied petroleum gas, methanol or
27	27	methanol/gasoline blends of 85 percent or greater, ethanol or
28	28	ethanol/gasoline blends of 85 percent or greater, biodiesel or
29	29	biodiesel/diesel blends of 20 percent or greater, hydrogen fuel
30	30	cells, or electricity, including electricity to power a plug-in
31	31	hybrid motor vehicle:
32	32	(1) by purchase or lease as authorized by law;
33	33	(2) by gift or loan of the equipment or facilities; or
34	34	(3) by gift or loan of the equipment or facilities or
35	35	by another arrangement under a service contract for the supply of
36	36	compressed natural gas, liquefied natural gas, liquefied petroleum
37	37	gas, methanol or methanol/gasoline blends of 85 percent or greater,
38	38	ethanol or ethanol/gasoline blends of 85 percent or greater,
39	39	biodiesel or biodiesel/diesel blends of 20 percent or greater,
40	40	hydrogen fuel cells, or electricity, including electricity to power
41	41	a plug-in hybrid motor vehicle.
42	42	(c) If the equipment or facilities are donated, loaned, or
43	43	provided through another arrangement with the supplier of
44	44	compressed natural gas, liquefied natural gas, liquefied petroleum
45	45	gas, methanol or methanol/gasoline blends of 85 percent or greater,
46	46	ethanol or ethanol/gasoline blends of 85 percent or greater,
47	47	biodiesel or biodiesel/diesel blends of 20 percent or greater,
48	48	hydrogen fuel cells, or electricity, including electricity to power
49	49	a plug-in hybrid motor vehicle, the supplier is entitled to recoup
50	50	its actual cost of donating, loaning, or providing the equipment or
51	51	facilities through its fuel charges under the supply contract.
52	52	(d) The commission may waive the requirements of this
53	53	section for a state agency on receipt of certification supported by
54	54	evidence acceptable to the commission that:
55	55	(1) the agency's vehicles will be operating primarily
56	56	in an area in which neither the agency nor a supplier has or can
57	57	reasonably be expected to establish adequate refueling for
58	58	compressed natural gas, liquefied natural gas, liquefied petroleum
59	59	gas, methanol or methanol/gasoline blends of 85 percent or greater,
60	60	ethanol or ethanol/gasoline blends of 85 percent or greater,
61	61	biodiesel or biodiesel/diesel blends of 20 percent or greater,
62	62	hydrogen fuel cells, or electricity, including electricity to power
63	63	a plug-in hybrid motor vehicle; or
64	64	(2) the agency is unable to obtain equipment or
65	65	refueling facilities necessary to operate vehicles using
66	66	compressed natural gas, liquefied natural gas, liquefied petroleum
67	67	gas, methanol or methanol/gasoline blends of 85 percent or greater,
68	68	ethanol or ethanol/gasoline blends of 85 percent or greater,
69	69	biodiesel or biodiesel/diesel blends of 20 percent or greater,
70	70	hydrogen fuel cells, or electricity, including electricity to power
71	71	a plug-in hybrid motor vehicle, at a projected cost that is
72	72	reasonably expected to be no greater than the net costs of continued
73	73	use of conventional gasoline or diesel fuels, measured over the
74	74	expected useful life of the equipment or facilities supplied.
75	75	SECTION 2. Subchapter A, Chapter 2158, Government Code, is
76	76	amended by adding Section 2158.0051 to read as follows:
77	77	Sec. 2158.0051. ALTERNATIVE FUEL FLEETS. (a) It is the
78	78	intent of this state that:
79	79	(1) the vehicle fleet of a state agency that operates a
80	80	fleet of more than 15 motor vehicles, subject to the availability of
81	81	funds, shall be converted into or replaced with motor vehicles that
82	82	use compressed natural gas, liquefied natural gas, liquefied
83	83	petroleum gas, hydrogen fuel cells, or electricity, including fully
84	84	electric vehicles and plug-in hybrid motor vehicles;
85	85	(2) a county or municipality that operates a vehicle
86	86	fleet of more than 15 motor vehicles is authorized, but is not
87	87	required, to convert the fleet into or replace the fleet with motor
88	88	vehicles that use compressed natural gas, liquefied natural gas,
89	89	liquefied petroleum gas, hydrogen fuel cells, or electricity,
90	90	including fully electric vehicles and plug-in hybrid motor
91	91	vehicles; and
92	92	(3) motor vehicles of a state agency, county, or
93	93	municipality described by Subdivisions (1) and (2) that are capable
94	94	of using fuels described by those subdivisions be primarily
95	95	operated with those fuels rather than conventional gasoline or
96	96	diesel fuels.
97	97	(b) In complying with Subsection (a), a state agency to
98	98	which this section applies shall prioritize:
99	99	(1) the purchase or lease of new motor vehicles when
100	100	replacing vehicles or adding vehicles to the fleet;
101	101	(2) the purchase of new motor vehicles to replace
102	102	vehicles that have the highest total mileage and do not use a fuel
103	103	described by Subsection (a);
104	104	(3) the conversion of motor vehicles that were driven
105	105	the most miles during the previous biennium and do not use a fuel
106	106	described by Subsection (a); and
107	107	(4) to the extent feasible, obtaining, whether by
108	108	conversion, purchase, or lease, motor vehicles that use compressed
109	109	natural gas, liquefied natural gas, or liquefied petroleum gas.
110	110	(c) Subsection (a)(1) does not apply to law enforcement or
111	111	emergency vehicles.
112	112	SECTION 3. Subtitle C, Title 5, Health and Safety Code, is
113	113	amended by adding Chapter 395 to read as follows:
114	114	CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM
115	115	Sec. 395.001. DEFINITIONS. In this chapter:
116	116	(1) "Alternative fuel" means compressed natural gas,
117	117	liquefied natural gas, liquefied petroleum gas, hydrogen fuel
118	118	cells, or electricity, including electricity to power fully
119	119	electric vehicles and plug-in hybrid motor vehicles.
120	120	(2) "Commission" means the Texas Commission on
121	121	Environmental Quality.
122	122	(3) "Incremental cost" means the cost of a motor
123	123	vehicle or the cost of purchasing or installing refueling
124	124	infrastructure and equipment less a baseline cost that would
125	125	otherwise be incurred by a grant recipient in the normal course of
126	126	business. Incremental costs may include added lease or fuel costs
127	127	as well as additional capital costs.
128	128	(4) "Motor vehicle" means a self-propelled device
129	129	designed for transporting persons or property on a public highway
130	130	that is required to be registered under Chapter 502, Transportation
131	131	Code.
132	132	(5) "Political subdivision" means a school district,
133	133	junior college district, river authority, water district or other
134	134	special district, or other political subdivision created under the
135	135	constitution or a statute of this state, other than a county or
136	136	municipality.
137	137	(6) "Program" means the governmental alternative fuel
138	138	fleet grant program established under this chapter.
139	139	(7) "State agency" has the meaning assigned by Section
140	140	2151.002, Government Code.
141	141	Sec. 395.002. PROGRAM. (a) The commission shall establish
142	142	and administer a governmental alternative fuel fleet grant program
143	143	to assist an eligible state agency, county, municipality, or
144	144	political subdivision in:
145	145	(1) purchasing or leasing new motor vehicles that
146	146	operate primarily on an alternative fuel; or
147	147	(2) converting motor vehicles to operate primarily on
148	148	an alternative fuel.
149	149	(b) The program is funded under the Texas emissions
150	150	reduction plan established under Chapter 386.
151	151	(c) The program may provide a grant to a state agency,
152	152	county, municipality, or political subdivision to:
153	153	(1) purchase or lease a new motor vehicle described by
154	154	Section 395.004;
155	155	(2) convert a motor vehicle to operate primarily on an
156	156	alternative fuel; or
157	157	(3) purchase, lease, or install refueling
158	158	infrastructure or equipment or procure refueling services as
159	159	described by Section 395.005 to store and dispense alternative fuel
160	160	needed for a motor vehicle described by Subdivision (1) or (2).
161	161	Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency,
162	162	county, or municipality is eligible to apply for a grant under this
163	163	program if the entity operates a fleet of more than 15 motor
164	164	vehicles, excluding motor vehicles that are owned and operated by a
165	165	private company or other third party under a contract with the
166	166	entity.
167	167	(b) A mass transit or school transportation provider or
168	168	other broadly similar public entity established to provide public
169	169	or school transportation services is eligible for a grant under
170	170	this program.
171	171	(c) If, on April 1 of an even-numbered year, the commission
172	172	has awarded less than 75 percent of the total amount to be awarded
173	173	in that fiscal year to eligible applicants under Subsections (a)
174	174	and (b), a political subdivision is eligible to apply for a grant
175	175	under the program during the remainder of that fiscal year.
176	176	Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant
177	177	recipient may purchase or lease with money from a grant under the
178	178	program a new motor vehicle that:
179	179	(1) is originally manufactured to operate using one or
180	180	more alternative fuels or is converted to operate using one or more
181	181	alternative fuels before the first retail sale of the vehicle; and
182	182	(2) has a dedicated system, dual-fuel system, or
183	183	bi-fuel system with a range equivalent of at least 75 miles when
184	184	operating on the alternative fuel without refueling, as published
185	185	by the United States Environmental Protection Agency.
186	186	(b) A grant recipient may not use money from a grant under
187	187	the program to replace a motor vehicle, transit bus, or school bus
188	188	that operates on an alternative fuel unless the replacement vehicle
189	189	produces fewer emissions and has greater fuel efficiency than the
190	190	vehicle being replaced.
191	191	Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND
192	192	SERVICES. A grant recipient may purchase, lease, or install
193	193	refueling infrastructure or equipment or procure refueling
194	194	services with money from a grant under the program if:
195	195	(1) the purchase, lease, installation, or procurement
196	196	is made in conjunction with the purchase or lease of a motor vehicle
197	197	as described by Section 395.004 or the conversion of a motor vehicle
198	198	to operate primarily on an alternative fuel;
199	199	(2) the grant recipient demonstrates that a refueling
200	200	station that meets the needs of the recipient is not available
201	201	within five miles of the location at which the recipient's vehicles
202	202	are stored or primarily used; and
203	203	(3) for the purchase or installation of refueling
204	204	infrastructure or equipment, the infrastructure or equipment will
205	205	be owned and operated by the grant recipient, and for the lease of
206	206	refueling infrastructure or equipment or the procurement of
207	207	refueling services, a third-party service provider engaged by the
208	208	grant recipient will provide the infrastructure, equipment, or
209	209	services.
210	210	Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease
211	211	agreement paid for with money from a grant under the program must
212	212	have a term of at least three years.
213	213	(b) Refueling infrastructure or equipment purchased or
214	214	installed with money from a grant under the program must be used
215	215	specifically to store or dispense alternative fuel, as determined
216	216	by the commission.
217	217	(c) A lease of or service agreement for refueling
218	218	infrastructure, equipment, or services paid for with money from a
219	219	grant under the program must have a term of at least three years.
220	220	Sec. 395.007. GRANT AMOUNTS. (a) The commission may
221	221	establish standardized grant amounts based on the incremental costs
222	222	associated with the purchase or lease of different categories of
223	223	motor vehicles, including the type of fuel used, vehicle class, and
224	224	other categories the commission considers appropriate.
225	225	(b) In determining the incremental costs and setting the
226	226	standardized grant amounts, the commission may consider the
227	227	difference in cost between a new motor vehicle operated using
228	228	conventional gasoline or diesel fuel and a new motor vehicle
229	229	operated using alternative fuel.
230	230	(c) The amount of a grant for the purchase or lease of a
231	231	motor vehicle may not exceed the amount of the incremental cost of
232	232	the purchase or lease.
233	233	(d) The commission may establish grant amounts to reimburse
234	234	the full cost of the purchase, lease, installation, or procurement
235	235	of refueling infrastructure, equipment, or services or may
236	236	establish criteria for reimbursing a percentage of the cost.
237	237	(e) A grant under the program may be combined with funding
238	238	from other sources, including other grant programs, except that a
239	239	grant may not be combined with other funding or grants from the
240	240	Texas emissions reduction plan. When combined with other funding
241	241	sources, a grant may not exceed the total cost to the grant
242	242	recipient.
243	243	Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION CREDITS.
244	244	(a) A purchase, lease, or installation that uses money from a
245	245	grant under the program may not be used for credit under a state or
246	246	federal emissions reduction credit averaging, banking, or trading
247	247	program.
248	248	(b) An emissions reduction generated by a purchase or lease
249	249	under this chapter:
250	250	(1) may not be used as a marketable emissions
251	251	reduction credit; and
252	252	(2) may be used to demonstrate conformity with the
253	253	state implementation plan.
254	254	(c) A project involving a new emissions reduction measure
255	255	that would otherwise generate marketable credits under a state or
256	256	federal emissions reduction credit averaging, banking, or trading
257	257	program is not eligible for funding under the program unless:
258	258	(1) the project includes the transfer of the
259	259	reductions that would otherwise be marketable credits to the state
260	260	implementation plan; and
261	261	(2) the reductions are permanently retired.
262	262	Sec. 395.009. USE OF GRANT MONEY BY COUNTY OR MUNICIPALITY.
263	263	A county or municipality shall prioritize the actions listed in
264	264	Sections 2158.0051(b)(1)-(4), Government Code, when using money
265	265	from a grant under the program.
266	266	Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The
267	267	commission shall establish specific criteria and procedures in
268	268	order to implement and administer the program, including the
269	269	creation and provision of application forms and guidance on the
270	270	application process.
271	271	(b) The commission shall award a grant through a contract
272	272	between the commission and the grant recipient.
273	273	(b-1) The commission shall provide an online application
274	274	process for the submission of all required application documents.
275	275	(c) The commission may limit funding for a particular period
276	276	according to priorities established by the commission, including
277	277	limiting the availability of grants to specific entities, for
278	278	certain types of vehicles and infrastructure, or to certain
279	279	geographic areas to ensure equitable distribution of grant funds
280	280	across the state.
281	281	(d) In awarding grants under the program, the commission
282	282	shall prioritize projects that:
283	283	(1) are proposed by a state agency;
284	284	(2) are in or near a nonattainment area;
285	285	(3) are in an affected county, as that term is defined
286	286	by Section 386.001(2);
287	287	(4) will produce the greatest emissions reductions;
288	288	and
289	289	(5) will generate the most marketable credits under a
290	290	state or federal emissions reduction credit averaging, banking, or
291	291	trading program.
292	292	(e) In addition to the requirements under Subsection (d), in
293	293	awarding grants under the program, the commission shall consider:
294	294	(1) the effectiveness of a proposed project in
295	295	assisting an applicant in complying with Section 2158.0051,
296	296	Government Code;
297	297	(2) the total amount of the emissions reduction that
298	298	would be achieved from the project;
299	299	(3) the type and number of vehicles purchased, leased,
300	300	or converted;
301	301	(4) the location of the fleet and the refueling
302	302	infrastructure or equipment;
303	303	(5) the number of vehicles served and the rate at which
304	304	vehicles are served by the refueling infrastructure or equipment;
305	305	(6) the amount of any matching funds committed by the
306	306	applicant; and
307	307	(7) the schedule for project completion.
308	308	(f) The commission may not award more than 10 percent of the
309	309	total amount awarded under the program in any fiscal year for
310	310	purchasing, leasing, installing, or procuring refueling
311	311	infrastructure, equipment, or services.
312	312	Sec. 395.011. FUNDING. The legislature may appropriate
313	313	money to the commission from the Texas emissions reduction plan
314	314	fund established under Section 386.251 to administer the program.
315	315	Sec. 395.0115. ADMINISTRATIVE COSTS. In each fiscal year,
316	316	the commission may use up to three-fourths of one percent of the
317	317	total amount of money awarded under the program in that fiscal year,
318	318	but not more than $1 million, for the administrative costs of the
319	319	program.
320	320	Sec. 395.012. RULES. The commission may adopt rules as
321	321	necessary to implement this chapter.
322	322	Sec. 395.013. REPORT REQUIRED. On or before November 1 of
323	323	each even-numbered year, the commission shall submit to the
324	324	governor, the lieutenant governor, and members of the legislature a
325	325	report that includes the following information regarding awards
326	326	made under the program during the preceding state fiscal biennium:
327	327	(1) the number of grants awarded under the program;
328	328	(2) the recipient of each grant awarded;
329	329	(3) the number of vehicles converted or replaced;
330	330	(4) the number, type, and location of any refueling
331	331	infrastructure, equipment, or services funded under the program;
332	332	(5) the total emissions reductions achieved under the
333	333	program; and
334	334	(6) any other information the commission considers
335	335	relevant.
336	336	Sec. 395.014. EXPIRATION. This chapter expires August 31,
337	337	2025.
338	338	SECTION 4. Section 386.051(b), Health and Safety Code, is
339	339	amended to read as follows:
340	340	(b) Under the plan, the commission and the comptroller shall
341	341	provide grants or other funding for:
342	342	(1) the diesel emissions reduction incentive program
343	343	established under Subchapter C, including for infrastructure
344	344	projects established under that subchapter;
345	345	(2) the motor vehicle purchase or lease incentive
346	346	program established under Subchapter D;
347	347	(3) the air quality research support program
348	348	established under Chapter 387;
349	349	(4) the clean school bus program established under
350	350	Chapter 390;
351	351	(5) the new technology implementation grant program
352	352	established under Chapter 391;
353	353	(6) the regional air monitoring program established
354	354	under Section 386.252(a);
355	355	(7) a health effects study as provided by Section
356	356	386.252(a);
357	357	(8) air quality planning activities as provided by
358	358	Section 386.252(a);
359	359	(9) a contract with the Energy Systems Laboratory at
360	360	the Texas Engineering Experiment Station for computation of
361	361	creditable statewide emissions reductions as provided by Section
362	362	386.252(a)(14);
363	363	(10) the clean fleet program established under Chapter
364	364	392;
365	365	(11) the alternative fueling facilities program
366	366	established under Chapter 393;
367	367	(12) the natural gas vehicle grant program and clean
368	368	transportation triangle program established under Chapter 394;
369	369	(13) other programs the commission may develop that
370	370	lead to reduced emissions of nitrogen oxides, particulate matter,
371	371	or volatile organic compounds in a nonattainment area or affected
372	372	county;
373	373	(14) other programs the commission may develop that
374	374	support congestion mitigation to reduce mobile source ozone
375	375	precursor emissions; [and]
376	376	(15) the drayage truck incentive program established
377	377	under Subchapter D-1; and
378	378	(16) the governmental alternative fuel fleet grant
379	379	program established under Chapter 395.
380	380	SECTION 5. Section 2158.0051, Government Code, as added by
381	381	this Act, applies beginning with the state fiscal biennium
382	382	beginning September 1, 2015.
383	383	SECTION 6. (a) To the extent that money is appropriated
384	384	from the Texas emissions reduction plan fund for that purpose, the
385	385	Texas Commission on Environmental Quality may use that money to
386	386	award grants under the governmental alternative fuel fleet grant
387	387	program created under Chapter 395, Health and Safety Code, as added
388	388	by this Act, except that the commission may not use for that purpose
389	389	more than three percent of the balance of the Texas emissions
390	390	reduction plan fund as of September 1 of each fiscal year of the
391	391	biennium for the governmental alternative fuel fleet grant program
392	392	in that fiscal year.
393	393	(b) This section expires August 31, 2025.
394	394	SECTION 7. This Act takes effect September 1, 2015.