By: Uresti S.B. No. 12
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, county, or
municipality that operates a fleet of more than 15 motor vehicles 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; and
(2) motor vehicles of a state agency, county, or
municipality described by Subdivision (1) that are capable of using
fuels described by that subdivision 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.
(c) A county or municipality may comply with the intent of
the legislature as described in Subsection (a). If the county or
municipality complies with the intent, the county or municipality
shall prioritize the actions listed in Subsections (b)(1)-(4).
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, Government Code.
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 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 less 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 use of money from a
grant under the program as required by Sections
2158.0051(b)(1)-(4).
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. EXPIRATION. This chapter expires August 31,
2025.
SECTION 3. Section 2158.0051, Government Code, as added by
this Act, applies beginning with the state fiscal biennium
beginning September 1, 2015.
SECTION 4. (a) To the extent that money is appropriated
from the Texas emissions reduction plan fund for that purpose, the
comptroller may use that money to award grants under the
governmental alternative fuel fleet grant program created under
Subchapter R, Chapter 403, Government Code, as added by this Act,
except that the comptroller may not use for that purpose more than
three percent of the balance of the Texas emissions reduction plan
fund as of September 1 of each fiscal year of the biennium for the
governmental alternative fuel fleet grant program in that fiscal
year.
(b) This section expires August 31, 2025.
SECTION 5. This Act takes effect September 1, 2015.