By: Uresti, Menéndez S.B. No. 12
(In the Senate - Filed March 12, 2015; March 16, 2015, read
first time and referred to Committee on Natural Resources and
Economic Development; April 7, 2015, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 9,
Nays 0; April 7, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 12 By: Uresti
A BILL TO BE ENTITLED
AN ACT
relating to alternative fuel fleets of certain governmental
entities, including funding for motor vehicles, infrastructure,
and equipment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2158, Government Code, is
amended by adding Section 2158.0051 to read as follows:
Sec. 2158.0051. ALTERNATIVE FUEL FLEETS. (a) It is the
intent of this state that:
(1) the vehicle fleet of a state agency that operates a
fleet of more than 15 motor vehicles, subject to the availability of
funds, shall be converted into or replaced with motor vehicles that
use compressed natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen fuel cells, or electricity, including fully
electric vehicles and plug-in hybrid motor vehicles;
(2) a county or municipality that operates a vehicle
fleet of more than 15 motor vehicles is authorized, but is not
required, to convert the fleet into or replace the fleet with motor
vehicles that use compressed natural gas, liquefied natural gas,
liquefied petroleum gas, hydrogen fuel cells, or electricity,
including fully electric vehicles and plug-in hybrid motor
vehicles; and
(3) motor vehicles of a state agency, county, or
municipality described by Subdivisions (1) and (2) that are capable
of using fuels described by those subdivisions be primarily
operated with those fuels rather than conventional gasoline or
diesel fuels.
(b) In complying with Subsection (a), a state agency to
which this section applies shall prioritize:
(1) the purchase or lease of new motor vehicles when
replacing vehicles or adding vehicles to the fleet;
(2) the purchase of new motor vehicles to replace
vehicles that have the highest total mileage and do not use a fuel
described by Subsection (a);
(3) the conversion of motor vehicles that were driven
the most miles during the previous biennium and do not use a fuel
described by Subsection (a); and
(4) to the extent feasible, obtaining, whether by
conversion, purchase, or lease, motor vehicles that use compressed
natural gas or liquefied natural gas.
SECTION 2. Chapter 403, Government Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM
Sec. 403.461. DEFINITIONS. In this subchapter:
(1) "Alternative fuel" means compressed natural gas,
liquefied natural gas, liquefied petroleum gas, hydrogen fuel
cells, or electricity, including electricity to power fully
electric vehicles and plug-in hybrid motor vehicles.
(2) "Incremental cost" means the cost of a motor
vehicle or the cost of purchasing or installing refueling
infrastructure and equipment less a baseline cost that would
otherwise be incurred by a grant recipient in the normal course of
business. Incremental costs may include added lease or fuel costs
as well as additional capital costs.
(3) "Motor vehicle" means a self-propelled device
designed for transporting persons or property on a public highway
that is required to be registered under Chapter 502, Transportation
Code.
(4) "Program" means the governmental alternative fuel
fleet grant program established under this subchapter.
(5) "State agency" has the meaning assigned by Section
2151.002.
Sec. 403.462. PROGRAM. (a) The comptroller shall
establish and administer a governmental alternative fuel fleet
grant program to assist an eligible state agency, county, or
municipality in complying with Section 2158.0051 through the
purchase or lease of new motor vehicles that operate primarily on an
alternative fuel.
(b) The program is funded under the Texas emissions
reduction plan established under Chapter 386, Health and Safety
Code.
(c) The program may provide a grant to a state agency,
county, or municipality to:
(1) purchase or lease a new motor vehicle described by
Section 403.464; or
(2) purchase and install refueling infrastructure and
equipment described by Section 403.465 to store and dispense
alternative fuel needed for a motor vehicle described by
Subdivision (1).
Sec. 403.463. ELIGIBLE APPLICANTS. (a) A state agency,
county, or municipality is eligible to apply for a grant under this
program if the entity operates a fleet of more than 15 motor
vehicles, excluding motor vehicles that are owned and operated by a
private company or other third party under a contract with the
entity.
(b) A transit or school transportation provider or other
similar entity established to provide public or school
transportation services is eligible for a grant under this program.
Sec. 403.464. MOTOR VEHICLE REQUIREMENTS. (a) A grant
recipient may purchase or lease with money from a grant under the
program a new motor vehicle that:
(1) is originally manufactured to operate using one or
more alternative fuels or is converted to operate using one or more
alternative fuels before the first retail sale of the vehicle; and
(2) has a dedicated system, dual-fuel system, or
bi-fuel system with a range of at least 125 miles when operating on
the alternative fuel without refueling, as published by the United
States Environmental Protection Agency.
(b) A grant recipient may not use money from a grant under
the program to replace a motor vehicle, transit bus, or school bus
that operates on an alternative fuel unless the replacement vehicle
produces fewer emissions and has greater fuel efficiency than the
vehicle being replaced.
Sec. 403.465. REFUELING INFRASTRUCTURE AND EQUIPMENT
REQUIREMENTS. A grant recipient may purchase or install refueling
infrastructure or equipment with money from a grant under the
program if:
(1) the purchase or installation is made in
conjunction with the purchase or lease of a motor vehicle as
described by Section 403.464;
(2) the grant recipient demonstrates that a refueling
station that meets the needs of the recipient is not available
within 30 miles of the location at which the recipient's vehicles
are stored or primarily used; and
(3) the refueling infrastructure or equipment will be
owned and operated by the grant recipient.
Sec. 403.466. ELIGIBLE COSTS. (a) A motor vehicle lease
agreement paid for with money from a grant under the program must
have a term of at least three years.
(b) Refueling infrastructure or equipment purchased or
installed with money from a grant under the program must be used
specifically to store or dispense alternative fuel, as determined
by the comptroller.
Sec. 403.467. GRANT AMOUNTS. (a) The comptroller may
establish standardized grant amounts based on the incremental costs
associated with the purchase or lease of different categories of
motor vehicles, including the type of fuel used, vehicle class, and
other categories the comptroller considers appropriate.
(b) In determining the incremental costs and setting the
standardized grant amounts, the comptroller may consider the
difference in cost between a new motor vehicle operated using
conventional gasoline or diesel fuel and a new motor vehicle
operated using alternative fuel.
(c) The amount of a grant for the purchase or lease of a
motor vehicle may not exceed the amount of the incremental cost of
the purchase or lease.
(d) The comptroller may establish grant amounts to
reimburse the full cost of the purchase and installation of
refueling infrastructure or equipment or may establish criteria for
reimbursing a percentage of the cost.
(e) A grant under the program may be combined with funding
from other sources, including other grant programs, except that a
grant may not be combined with other funding or grants from the
Texas emissions reduction plan. When combined with other funding
sources, a grant may not exceed the total cost to the grant
recipient.
Sec. 403.468. AVAILABILITY OF EMISSIONS REDUCTION CREDITS.
(a) A purchase, lease, or installation that uses money from a
grant under the program may not be used for credit under a state or
federal emissions reduction credit averaging, banking, or trading
program.
(b) An emissions reduction generated by a purchase or lease
under this subchapter:
(1) may not be used as a marketable emissions
reduction credit; and
(2) may be used to demonstrate conformity with the
state implementation plan.
(c) A project involving a new emissions reduction measure
that would otherwise generate marketable credits under a state or
federal emissions reduction credit averaging, banking, or trading
program is not eligible for funding under the program unless:
(1) the project includes the transfer of the
reductions that would otherwise be marketable credits to the state
implementation plan; and
(2) the reductions are permanently retired.
Sec. 403.469. USE OF GRANT MONEY BY COUNTY OR MUNICIPALITY.
A county or municipality shall prioritize the actions listed in
Sections 2158.0051(b)(1)-(4) when using money from a grant under
the program.
Sec. 403.470. GRANT PROCEDURES AND CRITERIA. (a) The
comptroller shall establish specific criteria and procedures in
order to implement and administer the program, including the
creation and provision of application forms and guidance on the
application process.
(b) The comptroller shall award a grant through a contract
between the comptroller and the grant recipient.
(c) The comptroller may limit funding for a particular
period according to priorities established by the comptroller,
including limiting the availability of grants to specific entities,
geographic areas, or types of vehicles and infrastructure.
(d) In determining priorities for funding under the
program, the comptroller shall consider:
(1) the effectiveness of a proposed project in
assisting an applicant in complying with Section 2158.0051;
(2) the total amount of the emissions reduction that
would be achieved from the project;
(3) the type and number of vehicles purchased, leased,
or converted;
(4) the location of the fleet and the refueling
infrastructure or equipment;
(5) the number of vehicles served and the rate at which
vehicles are served by the refueling infrastructure or equipment;
(6) the amount of any matching funds committed by the
applicant; and
(7) the schedule for project completion.
Sec. 403.471. FUNDING. The legislature may appropriate
money to the comptroller from the Texas emissions reduction plan
fund established under Section 386.251, Health and Safety Code, to
administer the program.
Sec. 403.472. EXPIRATION. This subchapter expires August
31, 2025.
SECTION 3. Section 386.051(b), Health and Safety Code, is
amended to read as follows:
(b) Under the plan, the commission and the comptroller shall
provide grants or other funding for:
(1) the diesel emissions reduction incentive program
established under Subchapter C, including for infrastructure
projects established under that subchapter;
(2) the motor vehicle purchase or lease incentive
program established under Subchapter D;
(3) the air quality research support program
established under Chapter 387;
(4) the clean school bus program established under
Chapter 390;
(5) the new technology implementation grant program
established under Chapter 391;
(6) the regional air monitoring program established
under Section 386.252(a);
(7) a health effects study as provided by Section
386.252(a);
(8) air quality planning activities as provided by
Section 386.252(a);
(9) a contract with the Energy Systems Laboratory at
the Texas Engineering Experiment Station for computation of
creditable statewide emissions reductions as provided by Section
386.252(a)(14);
(10) the clean fleet program established under Chapter
392;
(11) the alternative fueling facilities program
established under Chapter 393;
(12) the natural gas vehicle grant program and clean
transportation triangle program established under Chapter 394;
(13) other programs the commission may develop that
lead to reduced emissions of nitrogen oxides, particulate matter,
or volatile organic compounds in a nonattainment area or affected
county;
(14) other programs the commission may develop that
support congestion mitigation to reduce mobile source ozone
precursor emissions; [and]
(15) the drayage truck incentive program established
under Subchapter D-1; and
(16) the governmental alternative fuel fleet grant
program established under Subchapter R, Chapter 403, Government
Code.
SECTION 4. Section 386.252, Health and Safety Code, is
amended by adding Subsection (i) to read as follows:
(i) To the extent that money is appropriated from the fund
for that purpose, the comptroller may use that money to award grants
under the governmental alternative fuel fleet grant program
established under Subchapter R, Chapter 403, Government Code,
except that the comptroller may not use for that purpose more than
three percent of the balance of the fund as of September 1 of each
state fiscal year of the biennium for the governmental alternative
fuel fleet grant program in that fiscal year. This subsection
expires August 31, 2025.
SECTION 5. Section 2158.0051, Government Code, as added by
this Act, applies beginning with the state fiscal biennium
beginning September 1, 2015.
SECTION 6. This Act takes effect September 1, 2015.
* * * * *