Texas 2015 - 84th Regular

Texas Senate Bill SB1619 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R13385 JRR-F
2	2	By: Watson S.B. No. 1619
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Texas emissions reduction plan.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 386.001(2) and (3), Health and Safety
10	10	Code, are amended to read as follows:
11	11	(2) "Affected county" includes:
12	12	(A) Bastrop County;
13	13	(A-1) Bell County;
14	14	(B) Bexar County;
15	15	(C) Caldwell County;
16	16	(D) Comal County;
17	17	(E) Ellis County;
18	18	(F) Gregg County;
19	19	(G) Guadalupe County;
20	20	(H) Harrison County;
21	21	(I) Hays County;
22	22	(J) Henderson County;
23	23	(K) Hood County;
24	24	(L) Hunt County;
25	25	(M) Johnson County;
26	26	(N) Kaufman County;
27	27	(N-1) McLennan County;
28	28	(O) Nueces County;
29	29	(P) Parker County;
30	30	(Q) Rockwall County;
31	31	(R) Rusk County;
32	32	(S) San Patricio County;
33	33	(T) Smith County;
34	34	(U) Travis County;
35	35	(V) Upshur County;
36	36	(W) Victoria County;
37	37	(W-1) Webb County;
38	38	(X) Williamson County;
39	39	(Y) Wilson County; and
40	40	(Z) any other county designated as an affected
41	41	county by commission rule because of deteriorating air quality.
42	42	(3) "Commission" means the Texas [Natural Resource
43	43	Conservation] Commission on Environmental Quality.
44	44	SECTION 2. Section 386.002, Health and Safety Code, is
45	45	amended to read as follows:
46	46	Sec. 386.002. EXPIRATION. This chapter expires August 31,
47	47	2023 [2019].
48	48	SECTION 3. Section 386.051(b), Health and Safety Code, is
49	49	amended to read as follows:
50	50	(b) Under the plan, the commission and the comptroller shall
51	51	provide grants or other funding for:
52	52	(1) the diesel emissions reduction incentive program
53	53	established under Subchapter C, including for infrastructure
54	54	projects established under that subchapter;
55	55	(2) the motor vehicle purchase or lease incentive
56	56	program established under Subchapter D;
57	57	(3) the air quality research support program
58	58	established under Chapter 387;
59	59	(4) the clean school bus program established under
60	60	Chapter 390;
61	61	(5) the new technology implementation grant program
62	62	established under Chapter 391;
63	63	(6) the regional air monitoring program established
64	64	under Section 386.252(a);
65	65	(7) a health effects study as provided by Section
66	66	386.252(a);
67	67	(8) air quality planning activities as provided by
68	68	Section 386.252(a);
69	69	(9) a contract with the Energy Systems Laboratory at
70	70	the Texas A&M Engineering Experiment Station for computation of
71	71	creditable statewide emissions reductions as provided by Section
72	72	386.252(a) [386.252(a)(14)];
73	73	(10) the clean fleet program established under Chapter
74	74	392;
75	75	(11) the alternative fueling facilities program
76	76	established under Chapter 393;
77	77	(12) the natural gas vehicle grant program [and clean
78	78	transportation triangle program] established under Chapter 394;
79	79	(13) other programs the commission may develop that
80	80	lead to reduced emissions of nitrogen oxides, particulate matter,
81	81	or volatile organic compounds in a nonattainment area or affected
82	82	county;
83	83	(14) other programs the commission may develop that
84	84	support congestion mitigation to reduce mobile source ozone
85	85	precursor emissions; and
86	86	(15) the drayage truck incentive program established
87	87	under Subchapter D-1.
88	88	SECTION 4. Section 386.104(j), Health and Safety Code, is
89	89	amended to read as follows:
90	90	(j) The executive director may [shall] waive any
91	91	eligibility requirements established under this section on a
92	92	finding of good cause, which may include a waiver for short lapses
93	93	in registration or operation attributable to economic conditions,
94	94	seasonal work, or other circumstances.
95	95	SECTION 5. Section 386.152, Health and Safety Code, is
96	96	amended by amending Subsection (b) and adding Subsection (d) to
97	97	read as follows:
98	98	(b) The program shall authorize statewide incentives for
99	99	the purchase or lease of new light-duty motor vehicles powered by
100	100	compressed natural gas, liquefied petroleum gas, or hydrogen fuel
101	101	cell or other electric drives for a purchaser or lessee who agrees
102	102	to register and operate the vehicle in this state for a minimum
103	103	period of time to be established by the commission.
104	104	(d) The commission by rule may revise the standards for the
105	105	maximum unloaded vehicle weight rating and gross vehicle weight
106	106	rating of an eligible vehicle to ensure that all of the vehicle
107	107	weight configurations available under one general vehicle model may
108	108	be eligible for an incentive.
109	109	SECTION 6. Sections 386.153(a), (b-1), (c), and (d), Health
110	110	and Safety Code, are amended to read as follows:
111	111	(a) A new light-duty motor vehicle powered by compressed
112	112	natural gas or liquefied petroleum gas is eligible for a $5,000
113	113	[$2,500] incentive if the vehicle:
114	114	(1) has four wheels;
115	115	(2) was originally manufactured to comply with and has
116	116	been certified by an original equipment manufacturer or
117	117	intermediate or final state vehicle manufacturer as complying with,
118	118	or has been altered to comply with, federal motor vehicle safety
119	119	standards, state emissions regulations, and any additional state
120	120	regulations applicable to vehicles powered by compressed natural
121	121	gas or liquefied petroleum gas;
122	122	(3) was manufactured for use primarily on public
123	123	streets, roads, and highways;
124	124	(4) is rated at not more than 9,600 pounds unloaded
125	125	vehicle weight;
126	126	(5) has a dedicated or bi-fuel compressed natural gas
127	127	or liquefied petroleum gas fuel system with a range of at least 125
128	128	miles as estimated, published, and updated by the United States
129	129	Environmental Protection Agency;
130	130	(6) has, as applicable, a:
131	131	(A) compressed natural gas fuel system that
132	132	complies with the:
133	133	(i) 2013 NFPA 52 Vehicular Gaseous Fuel
134	134	Systems Code; and
135	135	(ii) American National Standard for Basic
136	136	Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
137	137	Containers, commonly cited as "ANSI/CSA NGV2"; or
138	138	(B) liquefied petroleum gas fuel system that
139	139	complies with:
140	140	(i) the 2011 NFPA 58 Liquefied Petroleum
141	141	Gas Code; and
142	142	(ii) Section VII of the 2013 ASME Boiler and
143	143	Pressure Vessel Code; and
144	144	(7) was acquired on or after September 1, 2013, or a
145	145	later date established by the commission, by the person applying
146	146	for the incentive under this subsection and for use or lease by that
147	147	person and not for resale.
148	148	(b-1) The incentive under Subsection (a) is limited to 1,000
149	149	[2,000] vehicles for each [the] state fiscal biennium [beginning
150	150	September 1, 2013].
151	151	(c) A new light-duty motor vehicle powered by an electric
152	152	drive is eligible for a $2,500 incentive if the vehicle:
153	153	(1) has four wheels;
154	154	(2) was manufactured for use primarily on public
155	155	streets, roads, and highways;
156	156	(3) has not been modified from the original
157	157	manufacturer's specifications;
158	158	(4) is rated at not more than 8,500 pounds unloaded
159	159	vehicle weight;
160	160	(5) has a maximum speed capability of at least 55 miles
161	161	per hour;
162	162	(6) is propelled to a significant extent by an
163	163	electric motor that draws electricity from a hydrogen fuel cell or
164	164	from a battery that:
165	165	(A) has a capacity of not less than four kilowatt
166	166	hours; and
167	167	(B) is capable of being recharged from an
168	168	external source of electricity; and
169	169	(7) was acquired on or after September 1, 2013, or a
170	170	later date as established by the commission, by the person applying
171	171	for the incentive under this subsection and for use or lease by that
172	172	person and not for resale.
173	173	(d) The incentive under Subsection (c) is limited to 2,000
174	174	vehicles for each [the] state fiscal biennium [beginning September
175	175	1, 2013].
176	176	SECTION 7. Section 386.155, Health and Safety Code, is
177	177	amended to read as follows:
178	178	Sec. 386.155. MANUFACTURER'S REPORT. (a) At the beginning
179	179	of but not later than July 1 of each year preceding the vehicle
180	180	model year, a manufacturer of motor vehicles shall provide to the
181	181	commission a list of the new vehicle models that the manufacturer
182	182	intends to sell in this state during that model year that meet the
183	183	incentive requirements [emissions standards] established [by the
184	184	schedules set out] under Section 386.153. The manufacturer may
185	185	supplement the list provided to the commission under this section
186	186	as necessary to include additional new vehicle models the
187	187	manufacturer intends to sell in this state during the model year.
188	188	(b) The commission may supplement the information provided
189	189	under Subsection (a) with additional information on available
190	190	vehicle models, including information provided by manufacturers of
191	191	systems to convert new motor vehicles to operate on natural gas or
192	192	liquefied petroleum gas before sale as a new vehicle.
193	193	SECTION 8. Section 386.156, Health and Safety Code, is
194	194	amended to read as follows:
195	195	Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
196	196	August 1 each year the commission shall publish a list of new
197	197	[model] motor vehicle models [vehicles] eligible for inclusion in
198	198	an incentive under this subchapter [as listed for the commission
199	199	under Section 386.155]. The commission shall publish supplements
200	200	to that list as necessary to include additional new vehicle models.
201	201	(b) The commission shall publish the list of eligible motor
202	202	vehicle models [vehicles] on the commission's Internet website.
203	203	SECTION 9. Section 386.158(b), Health and Safety Code, is
204	204	amended to read as follows:
205	205	(b) A lease incentive for a new light-duty motor vehicle
206	206	shall be prorated based on a three-year [four-year] lease term.
207	207	SECTION 10. Section 386.160(c), Health and Safety Code, is
208	208	amended to read as follows:
209	209	(c) The commission may require the submission of forms and
210	210	documentation as needed to verify eligibility for an incentive
211	211	under this subchapter [In addition to other forms developed and
212	212	published under this section, the commission shall develop and
213	213	publish a verification form by which, with information provided by
214	214	the dealer or leasing agent, the commission can verify the sale of a
215	215	vehicle covered by this subchapter. The verification form shall
216	216	include at least the name of the purchaser, the vehicle
217	217	identification number of the vehicle involved, the date of the
218	218	purchase, and the name of the new motor dealer or leasing agent
219	219	involved in the transaction. At the time of sale or lease of a
220	220	vehicle eligible for an incentive under this subchapter, the dealer
221	221	or leasing agent shall complete the verification form supplied to
222	222	the dealer by the commission. The purchaser or lessee shall include
223	223	the completed verification form as part of the purchaser's
224	224	application for an incentive. The dealer shall maintain a copy of
225	225	the completed verification form for at least two years from the date
226	226	of the transaction].
227	227	SECTION 11. The heading to Section 386.161, Health and
228	228	Safety Code, is amended to read as follows:
229	229	Sec. 386.161. [SUSPENSION OF] PURCHASE OR LEASE INCENTIVES
230	230	INFORMATION.
231	231	SECTION 12. Subchapter D, Chapter 386, Health and Safety
232	232	Code, is amended by adding Section 386.1611 to read as follows:
233	233	Sec. 386.1611. RESERVATION OF INCENTIVES. The commission
234	234	may provide for dealers and leasing agents to reserve for a limited
235	235	time period incentives for vehicles that are not readily available
236	236	and must be ordered, if the dealer or leasing agent has a purchase
237	237	or lease order signed by an identified customer.
238	238	SECTION 13. Section 386.162, Health and Safety Code, is
239	239	amended to read as follows:
240	240	Sec. 386.162. EXPIRATION. This subchapter expires August
241	241	31, 2023 [2015].
242	242	SECTION 14. Section 386.252, Health and Safety Code, is
243	243	amended by amending Subsection (a) and adding Subsections (g-1) and
244	244	(g-2) to read as follows:
245	245	(a) Money in the fund may be used only to implement and
246	246	administer programs established under the plan. Money
247	247	appropriated to the commission to be used for the programs under
248	248	Section 386.051(b) shall be allocated as follows:
249	249	(1) not more than four percent may be used for the
250	250	clean school bus program under Chapter 390;
251	251	(2) not more than three percent may be used for the new
252	252	technology implementation grant program under Chapter 391, from
253	253	which at least $1 million will be set aside for electricity storage
254	254	projects related to renewable energy;
255	255	(3) five percent shall be used for the clean fleet
256	256	program under Chapter 392;
257	257	(4) not more than $3 million may be used by the
258	258	commission to fund a regional air monitoring program in commission
259	259	Regions 3 and 4 to be implemented under the commission's oversight,
260	260	including direction regarding the type, number, location, and
261	261	operation of, and data validation practices for, monitors funded by
262	262	the program through a regional nonprofit entity located in North
263	263	Texas having representation from counties, municipalities, higher
264	264	education institutions, and private sector interests across the
265	265	area;
266	266	(5) not less than 16 percent shall be used for the
267	267	Texas natural gas vehicle grant program under Chapter 394;
268	268	(6) not more than 10 [five] percent may be used [to
269	269	provide grants for natural gas fueling stations under the clean
270	270	transportation triangle program under Section 394.010;
271	271	[(7) not more than five percent may be used] for the
272	272	Texas alternative fueling facilities program under Chapter 393, of
273	273	which a specified amount may be used for fueling stations to provide
274	274	natural gas fuel;
275	275	(7) [(8)] a specified amount may be used each year to
276	276	support research related to air quality as provided by Chapter 387;
277	277	(8) [(9)] not more than $200,000 may be used for a
278	278	health effects study[;
279	279	[(10) $500,000 is to be deposited in the state treasury
280	280	to the credit of the clean air account created under Section
281	281	382.0622 to supplement funding for air quality planning activities
282	282	in affected counties];
283	283	(9) [(11)] at least $4 million and up to four percent
284	284	to a maximum of $7 million, whichever is greater, is allocated to
285	285	the commission for administrative costs;
286	286	(10) [(12)] at least two percent and up to five
287	287	percent [of the fund] is to be used by the commission for the
288	288	drayage truck incentive program established under Subchapter D-1;
289	289	(11) [(13)] not more than five percent may be used for
290	290	the light-duty motor vehicle purchase or lease incentive program
291	291	established under Subchapter D;
292	292	(12) [(14)] not more than $216,000 is allocated to the
293	293	commission to contract with the Energy Systems Laboratory at the
294	294	Texas A&M Engineering Experiment Station annually for the
295	295	development and annual computation of creditable statewide
296	296	emissions reductions obtained through wind and other renewable
297	297	energy resources for the state implementation plan;
298	298	[(15) 1.5 percent of the money in the fund is allocated
299	299	for administrative costs incurred by the laboratory;] and
300	300	(13) [(16)] the balance is to be used by the
301	301	commission for the diesel emissions reduction incentive program
302	302	under Subchapter C as determined by the commission.
303	303	(g-1) To supplement funding for air quality planning
304	304	activities in affected counties, $500,000 from the fund is to be
305	305	deposited annually in the state treasury to the credit of the clean
306	306	air account created under Section 382.0622.
307	307	(g-2) Money in the fund may be allocated for administrative
308	308	costs incurred by the laboratory.
309	309	SECTION 15. Section 390.006, Health and Safety Code, is
310	310	amended to read as follows:
311	311	Sec. 390.006. EXPIRATION. This chapter expires August 31,
312	312	2023 [2019].
313	313	SECTION 16. Section 391.002(b), Health and Safety Code, is
314	314	amended to read as follows:
315	315	(b) Projects that may be considered for a grant under the
316	316	program include:
317	317	(1) advanced clean energy projects, as defined by
318	318	Section 382.003;
319	319	(2) new technology projects that reduce emissions of
320	320	regulated pollutants from stationary [point] sources, including
321	321	projects that reduce emissions from oil and gas production,
322	322	storage, and transmission activities through:
323	323	(A) the replacement, repower, or retrofit of
324	324	stationary compressor engines; or
325	325	(B) the installation of systems to reduce or
326	326	eliminate the flaring of gas or the burning of gas using other
327	327	combustion control devices; and
328	328	(3) electricity storage projects related to renewable
329	329	energy, including projects to store electricity produced from wind
330	330	and solar generation that provide efficient means of making the
331	331	stored energy available during periods of peak energy use.
332	332	SECTION 17. Section 391.205(a), Health and Safety Code, is
333	333	amended to read as follows:
334	334	(a) Except as provided by Subsection (c), in awarding grants
335	335	under this chapter the commission shall give preference to projects
336	336	that:
337	337	(1) involve the transport, use, recovery for use, or
338	338	prevention of the loss of natural resources originating or produced
339	339	in this state;
340	340	(2) contain an energy efficiency component; or
341	341	(3) include the use of solar, wind, or other renewable
342	342	energy sources.
343	343	SECTION 18. Section 391.304, Health and Safety Code, is
344	344	amended to read as follows:
345	345	Sec. 391.304. EXPIRATION. This chapter expires August 31,
346	346	2023 [2019].
347	347	SECTION 19. Section 392.001(1), Health and Safety Code, is
348	348	amended to read as follows:
349	349	(1) "Alternative fuel" means a fuel other than
350	350	gasoline or diesel fuel, including electricity, compressed natural
351	351	gas, liquefied [liquified] natural gas, hydrogen, propane, or a
352	352	mixture of fuels containing at least 85 percent methanol by volume.
353	353	SECTION 20. Section 392.003(a), Health and Safety Code, is
354	354	amended to read as follows:
355	355	(a) A vehicle is a qualifying vehicle that may be considered
356	356	for a grant under the program if during the eligibility period
357	357	established by the commission [calendar year] the entity purchases
358	358	a new on-road vehicle that:
359	359	(1) is certified to current federal emissions
360	360	standards;
361	361	(2) replaces a diesel-powered on-road vehicle of the
362	362	same weight classification and use; and
363	363	(3) is a hybrid vehicle or fueled by an alternative
364	364	fuel.
365	365	SECTION 21. Section 392.004(d), Health and Safety Code, is
366	366	amended to read as follows:
367	367	(d) The commission shall minimize, to the maximum extent
368	368	possible, the amount of paperwork required for an application. [An
369	369	applicant may be required to submit a photograph or other
370	370	documentation of a vehicle identification number, registration
371	371	information, inspection information, tire condition, or engine
372	372	block identification only if the photograph or documentation is
373	373	requested by the commission after the commission has decided to
374	374	award a grant to the applicant under this chapter.]
375	375	SECTION 22. Section 392.005, Health and Safety Code, is
376	376	amended by amending Subsections (b), (c), and (i) and adding
377	377	Subsection (c-1) to read as follows:
378	378	(b) To be eligible for a grant under the program, a project
379	379	must:
380	380	(1) result in a reduction in emissions of nitrogen
381	381	oxides or other pollutants, as established by the commission, of at
382	382	least 25 percent, based on:
383	383	(A) the baseline emission level set by the
384	384	commission under Subsection (g); and
385	385	(B) the certified emission rate of the new
386	386	vehicle; and
387	387	(2) replace a vehicle that:
388	388	(A) is an on-road vehicle that has been owned,
389	389	leased, or otherwise commercially financed and registered and
390	390	operated by the applicant in Texas for at least the two years
391	391	immediately preceding the submission of a grant application;
392	392	(B) satisfies any minimum average annual mileage
393	393	or fuel usage requirements established by the commission;
394	394	(C) satisfies any minimum percentage of annual
395	395	usage requirements established by the commission; and
396	396	(D) is in operating condition and has at least
397	397	five [two] years of remaining useful life, as determined in
398	398	accordance with criteria established by the commission.
399	399	(c) As a condition of receiving a grant, the qualifying
400	400	vehicle must be continuously owned, registered, and operated in the
401	401	state by the grant recipient until the earlier of the fifth
402	402	anniversary of the activity start date established by the
403	403	commission [the date of reimbursement of the grant-funded expenses]
404	404	or [until] the date the vehicle has been in operation for 400,000
405	405	miles after the activity start date established by the commission
406	406	[of reimbursement]. Not less than 75 percent of the annual use of
407	407	the qualifying vehicle, either mileage or fuel use as determined by
408	408	the commission, must occur in the state.
409	409	(c-1) For purposes of Subsection (c), the commission shall
410	410	establish the activity start date based on the date the commission
411	411	accepts verification of the disposition of the vehicle being
412	412	replaced.
413	413	(i) The executive director may [shall] waive the
414	414	requirements of Subsection (b)(2)(A) on a finding of good cause,
415	415	which may include a waiver for short lapses in registration or
416	416	operation attributable to economic conditions, seasonal work, or
417	417	other circumstances.
418	418	SECTION 23. Section 392.008, Health and Safety Code, is
419	419	amended to read as follows:
420	420	Sec. 392.008. EXPIRATION. This chapter expires August 31,
421	421	2023 [2017].
422	422	SECTION 24. Section 393.001, Health and Safety Code, is
423	423	amended by amending Subdivision (1) and adding Subdivision (1-a) to
424	424	read as follows:
425	425	(1) "Alternative fuel" means a fuel other than
426	426	gasoline or diesel fuel, other than biodiesel fuel, including
427	427	electricity, compressed natural gas, liquefied [liquified] natural
428	428	gas, hydrogen, propane, or a mixture of fuels containing at least 85
429	429	percent methanol by volume.
430	430	(1-a) "Clean transportation triangle" means:
431	431	(A) counties containing or intersected by a
432	432	portion of an interstate highway connecting the cities of Houston,
433	433	San Antonio, Dallas, and Fort Worth;
434	434	(B) counties located within the triangular area
435	435	formed by the interstate highways described by Paragraph (A);
436	436	(C) counties in this state all or part of which
437	437	are included in a nonattainment area designated under Section
438	438	107(d) of the federal Clean Air Act (42 U.S.C. Section 7407), as
439	439	amended; and
440	440	(D) counties designated as affected counties
441	441	under Section 386.001.
442	442	SECTION 25. Section 393.002, Health and Safety Code, is
443	443	amended to read as follows:
444	444	Sec. 393.002. PROGRAM. (a) The commission shall establish
445	445	and administer the Texas alternative fueling facilities program to
446	446	provide fueling facilities for alternative fuel in the clean
447	447	transportation triangle [nonattainment areas]. Under the program,
448	448	the commission shall provide a grant for each eligible facility to
449	449	offset the cost of those facilities.
450	450	(b) An entity that constructs or [,] reconstructs[, or
451	451	acquires] an alternative fueling facility is eligible to
452	452	participate in the program.
453	453	(c) To ensure that alternative fuel vehicles have access to
454	454	fuel and to build the foundation for a self-sustaining market for
455	455	alternative fuels in Texas, the commission shall provide for
456	456	strategically placed fueling facilities in the clean
457	457	transportation triangle to enable an alternative fuel vehicle to
458	458	travel in those areas relying solely on the alternative fuel.
459	459	(d) The commission shall maintain a listing to be made
460	460	available to the public online of all vehicle fueling facilities
461	461	that have received grant funding, including location and hours of
462	462	operation.
463	463	SECTION 26. Section 393.003, Health and Safety Code, is
464	464	amended by amending Subsections (a) and (b) and adding Subsections
465	465	(d) and (e) to read as follows:
466	466	(a) An entity operating in this state that constructs or [,]
467	467	reconstructs[, or acquires] a facility to [store, compress, or]
468	468	dispense alternative fuels may apply for and receive a grant under
469	469	the program.
470	470	(b) The commission may [adopt guidelines to] allow a
471	471	regional planning commission, council of governments, or similar
472	472	regional planning agency created under Chapter 391, Local
473	473	Government Code, or a private nonprofit organization to apply for
474	474	and receive a grant to improve the ability of the program to achieve
475	475	its goals.
476	476	(d) An application for a grant under the program must
477	477	include a certification that the applicant complies with laws,
478	478	rules, guidelines, and requirements applicable to taxation of fuel
479	479	provided by the applicant at each fueling facility owned or
480	480	operated by the applicant. The commission may terminate a grant
481	481	awarded under this section without further obligation to the grant
482	482	recipient if the commission determines that the recipient did not
483	483	comply with a law, rule, guideline, or requirement described by
484	484	this subsection. This subsection does not create a cause of action
485	485	to contest an application or award of a grant.
486	486	(e) The commission shall disperse grants under the program
487	487	through a competitive application selection process to offset a
488	488	portion of the eligible costs.
489	489	SECTION 27. Section 393.004, Health and Safety Code, is
490	490	amended to read as follows:
491	491	Sec. 393.004. ELIGIBILITY OF FACILITIES FOR GRANTS. (a) In
492	492	addition to the requirements of this chapter, the commission shall
493	493	establish additional eligibility and prioritization criteria as
494	494	needed to implement the program [The commission by rule shall
495	495	establish criteria for prioritizing facilities eligible to receive
496	496	grants under this chapter. The commission shall review and revise
497	497	the criteria as appropriate].
498	498	(b) To be eligible for a grant under the program, the entity
499	499	receiving the grant must agree to make the alternative fueling
500	500	facility accessible and available to the public [persons not
501	501	associated with the entity] at times designated by the commission
502	502	in the grant contract [agreement].
503	503	(c) The commission may not award more than one grant for
504	504	each facility.
505	505	(d) The commission may give preference to or otherwise limit
506	506	grant selections to:
507	507	(1) fueling facilities providing specific types of
508	508	alternative fuels;
509	509	(2) fueling facilities in a specified area or
510	510	location; and
511	511	(3) fueling facilities meeting other specified
512	512	prioritization criteria established by the commission.
513	513	(e) For fueling facilities to provide natural gas, the
514	514	commission shall give preference to:
515	515	(1) facilities providing both liquefied natural gas
516	516	and compressed natural gas at a single location;
517	517	(2) facilities located not more than one mile from an
518	518	interstate highway system; and
519	519	(3) facilities located in the triangular area in and
520	520	between the Houston, San Antonio, and Dallas-Fort Worth areas [A
521	521	recipient of a grant under this chapter is not eligible to receive a
522	522	second grant under this chapter for the same facility].
523	523	SECTION 28. Section 393.005, Health and Safety Code, is
524	524	amended to read as follows:
525	525	Sec. 393.005. RESTRICTION ON USE OF GRANT. (a) A
526	526	recipient of a grant under this chapter shall use the grant only to
527	527	pay the costs of the facility for which the grant is made. The
528	528	recipient may not use the grant to pay the recipient's:
529	529	(1) administrative expenses;
530	530	(2) expenses for the purchase of land or an interest in
531	531	land; or
532	532	(3) expenses for equipment or facility improvements
533	533	that are not directly related to the delivery, storage,
534	534	compression, or dispensing of the alternative fuel at the facility.
535	535	(b) Each grant must be awarded using a contract that
536	536	requires the recipient to meet operational, maintenance, and
537	537	reporting requirements as specified by the commission.
538	538	SECTION 29. Section 393.006, Health and Safety Code, is
539	539	amended to read as follows:
540	540	Sec. 393.006. AMOUNT OF GRANT. (a) Grants awarded under
541	541	this chapter for a facility to provide alternative fuels other than
542	542	natural gas may not exceed [For each eligible facility for which a
543	543	recipient is awarded a grant under the program, the commission
544	544	shall award the grant in an amount equal to] the lesser of:
545	545	(1) 50 percent of the sum of the actual eligible costs
546	546	incurred by the grant recipient within deadlines established by the
547	547	commission [to construct, reconstruct, or acquire the facility]; or
548	548	(2) $600,000.
549	549	(b) Grants awarded under this chapter for a facility to
550	550	provide natural gas may not exceed:
551	551	(1) $400,000 for a compressed natural gas facility;
552	552	(2) $400,000 for a liquefied natural gas facility; or
553	553	(3) $600,000 for a facility providing both liquefied
554	554	and compressed natural gas.
555	555	SECTION 30. Section 393.007, Health and Safety Code, is
556	556	amended to read as follows:
557	557	Sec. 393.007. EXPIRATION. This chapter expires August 31,
558	558	2023 [2018].
559	559	SECTION 31. Sections 394.001(1), (4), and (5), Health and
560	560	Safety Code, are amended to read as follows:
561	561	(1) "Clean transportation triangle" has the meaning
562	562	assigned by Section 393.001 ["Advisory board" means the Texas
563	563	Emissions Reduction Plan Advisory Board].
564	564	(4) "Heavy-duty motor vehicle" means a motor vehicle
565	565	that [with]:
566	566	(A) has a gross vehicle weight rating of more
567	567	than 8,500 pounds; and
568	568	(B) is certified to or has an engine certified to
569	569	the United States Environmental Protection Agency's emissions
570	570	standards for heavy-duty vehicles or engines.
571	571	(5) "Incremental cost" has the meaning assigned by
572	572	Section 386.001 [means the difference between the manufacturer's
573	573	suggested retail price of a baseline vehicle, the documented dealer
574	574	price of a baseline vehicle, cost to lease or otherwise
575	575	commercially finance a baseline vehicle, cost to repower with a
576	576	baseline engine, or other appropriate baseline cost established by
577	577	the commission, and the actual cost of the natural gas vehicle
578	578	purchase, lease, or other commercial financing, or repower].
579	579	SECTION 32. Section 394.003(a), Health and Safety Code, is
580	580	amended to read as follows:
581	581	(a) A vehicle is a qualifying vehicle that may be considered
582	582	for a grant under the program if during the eligibility period
583	583	established by the commission [calendar year] the entity:
584	584	(1) purchased, leased, or otherwise commercially
585	585	financed the vehicle as a new on-road heavy-duty or medium-duty
586	586	motor vehicle that:
587	587	(A) is a natural gas vehicle;
588	588	(B) is certified to current federal emissions
589	589	standards;
590	590	(C) replaces an on-road heavy-duty or
591	591	medium-duty motor vehicle of the same weight classification and
592	592	use; and
593	593	(D) is certified to or powered by an engine
594	594	certified to:
595	595	(i) emit not more than 0.2 grams of nitrogen
596	596	oxides per brake horsepower hour; [or]
597	597	(ii) meet or exceed the United States
598	598	Environmental Protection Agency's Bin 5 standard for light-duty
599	599	engines when powering the vehicle; or
600	600	(iii) meet or exceed the United States
601	601	Environmental Protection Agency's chassis-certified heavy-duty
602	602	vehicle emission standard of:
603	603	(a) 0.2 grams of nitrogen oxides per
604	604	mile for vehicles with a gross vehicle weight rating of 8,501 to
605	605	10,000 pounds; or
606	606	(b) 0.4 grams of nitrogen oxides per
607	607	mile for vehicles with a gross vehicle weight rating of 10,001 to
608	608	14,000 pounds; or
609	609	(2) repowered the on-road motor vehicle to a natural
610	610	gas vehicle powered by a natural gas engine that:
611	611	(A) is certified to current federal emissions
612	612	standards; and
613	613	(B) is:
614	614	(i) a heavy-duty engine that is certified
615	615	to emit not more than 0.2 grams of nitrogen oxides per brake
616	616	horsepower hour; [or]
617	617	(ii) certified to meet or exceed the United
618	618	States Environmental Protection Agency's Bin 5 standard for
619	619	light-duty engines when powering the vehicle; or
620	620	(iii) certified to meet or exceed the
621	621	United States Environmental Protection Agency's chassis-certified
622	622	heavy-duty vehicle emission standard of:
623	623	(a) 0.2 grams of nitrogen oxides per
624	624	mile for vehicles with a gross vehicle weight rating of 8,501 to
625	625	10,000 pounds when powering the vehicle; or
626	626	(b) 0.4 grams of nitrogen oxides per
627	627	mile for vehicles with a gross vehicle weight rating of 10,001 to
628	628	14,000 pounds when powering the vehicle.
629	629	SECTION 33. Section 394.005, Health and Safety Code, is
630	630	amended by amending Subsections (a), (b), (c), (g), and (i) and
631	631	adding Subsection (c-1) to read as follows:
632	632	(a) The commission [by rule] shall establish criteria for
633	633	prioritizing qualifying vehicles eligible to receive grants under
634	634	this chapter. The commission shall review and revise the criteria
635	635	as appropriate [after consultation with the advisory board].
636	636	(b) To be eligible for a grant under the program:
637	637	(1) the use of the qualifying vehicle must be
638	638	projected to result in a reduction in emissions of nitrogen oxides
639	639	of at least 25 percent as compared to the motor vehicle or engine
640	640	being replaced, based on:
641	641	(A) the baseline emission level set by the
642	642	commission under Subsection (g); and
643	643	(B) the certified emission rate of the new
644	644	vehicle; and
645	645	(2) the qualifying vehicle must:
646	646	(A) replace a heavy-duty or medium-duty motor
647	647	vehicle that:
648	648	(i) is an on-road vehicle that has been
649	649	owned, leased, or otherwise commercially financed and registered
650	650	and operated by the applicant in Texas for at least the two years
651	651	immediately preceding the submission of a grant application;
652	652	(ii) satisfies any minimum average annual
653	653	mileage or fuel usage requirements established by the commission;
654	654	(iii) satisfies any minimum percentage of
655	655	annual usage requirements established by the commission; and
656	656	(iv) is in operating condition and has at
657	657	least four [two] years of remaining useful life, as determined in
658	658	accordance with criteria established by the commission; or
659	659	(B) be a heavy-duty or medium-duty motor vehicle
660	660	repowered with a natural gas engine that:
661	661	(i) is installed in an on-road vehicle that
662	662	has been owned, leased, or otherwise commercially financed and
663	663	registered and operated by the applicant in Texas for at least the
664	664	two years immediately preceding the submission of a grant
665	665	application;
666	666	(ii) satisfies any minimum average annual
667	667	mileage or fuel usage requirements established by the commission;
668	668	(iii) satisfies any minimum percentage of
669	669	annual usage requirements established by the commission; and
670	670	(iv) is installed in an on-road vehicle
671	671	that, at the time of the vehicle's repowering, was in operating
672	672	condition and had at least four [two] years of remaining useful
673	673	life, as determined in accordance with criteria established by the
674	674	commission.
675	675	(c) As a condition of receiving a grant, the qualifying
676	676	vehicle must be continuously owned, leased, or otherwise
677	677	commercially financed and registered and operated in the state by
678	678	the grant recipient until the earlier of the fourth anniversary of
679	679	the activity start date established by the commission [the date of
680	680	reimbursement of the grant-funded expenses] or [until] the date the
681	681	vehicle has been in operation for 400,000 miles after the activity
682	682	start date established by the commission [of reimbursement]. Not
683	683	less than 75 percent of the annual use of the qualifying vehicle,
684	684	either mileage or fuel use as determined by the commission, must
685	685	occur in the clean transportation triangle [:
686	686	[(1) the counties any part of which are included in the
687	687	area described by Section 394.010(a); or
688	688	[(2) counties designated as nonattainment areas
689	689	within the meaning of Section 107(d) of the federal Clean Air Act
690	690	(42 U.S.C. Section 7407)].
691	691	(c-1) For purposes of Subsection (c), the commission shall
692	692	establish the activity start date based on the date the commission
693	693	accepts verification of the disposition of the vehicle or engine.
694	694	(g) The commission shall establish baseline emission levels
695	695	for emissions of nitrogen oxides for on-road heavy-duty or
696	696	medium-duty motor vehicles being replaced or repowered by using the
697	697	emission certification for the engine or vehicle being
698	698	replaced. The commission may consider deterioration of the
699	699	emission performance of the engine of the vehicle being replaced in
700	700	establishing the baseline emission level. The commission may
701	701	consider and establish baseline emission rates for additional
702	702	pollutants of concern[, as determined by the commission after
703	703	consultation with the advisory board].
704	704	(i) The executive director may [shall] waive the
705	705	requirements of Subsection (b)(2)(A)(i) on a finding of good cause,
706	706	which may include short lapses in registration or operation due to
707	707	economic conditions, seasonal work, or other circumstances.
708	708	SECTION 34. Section 394.006, Health and Safety Code, is
709	709	amended to read as follows:
710	710	Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient of
711	711	a grant under this chapter shall use the grant to pay the
712	712	incremental costs of the replacement or vehicle repower for which
713	713	the grant is made, which may include a portion of the initial cost
714	714	of the natural gas vehicle or natural gas engine, including the cost
715	715	of the natural gas fuel system and installation [and the reasonable
716	716	and necessary expenses incurred for the labor needed to install
717	717	emissions-reducing equipment]. The recipient may not use the
718	718	grant to pay the recipient's administrative expenses.
719	719	SECTION 35. Section 394.007(c), Health and Safety Code, is
720	720	amended to read as follows:
721	721	(c) A person may not receive a grant under this chapter
722	722	that, when combined with any other grant, tax credit, or other
723	723	governmental incentive, exceeds the incremental cost of the vehicle
724	724	or vehicle repower for which the grant is awarded. A person shall
725	725	return to the commission the amount of a grant awarded under this
726	726	chapter that, when combined with any other grant, tax credit, or
727	727	other governmental incentive, exceeds the incremental cost of the
728	728	vehicle or vehicle repower for which the grant is awarded.
729	729	SECTION 36. Sections 394.008(a) and (b), Health and Safety
730	730	Code, are amended to read as follows:
731	731	(a) The commission shall establish [adopt] procedures for:
732	732	(1) awarding grants under this chapter to reimburse
733	733	eligible costs [in the form of rebates]; and
734	734	(2) streamlining the grant application, contracting,
735	735	reimbursement, and reporting process for qualifying natural gas
736	736	vehicle purchases or repowers.
737	737	(b) Procedures established [adopted] under this section
738	738	must:
739	739	(1) provide for the commission to compile and
740	740	regularly update a listing of potentially eligible [preapproved]
741	741	natural gas vehicles and engines powered by natural gas that are
742	742	certified to:
743	743	(A) [powered by natural gas engines certified to]
744	744	emit not more than 0.2 grams of nitrogen oxides per brake horsepower
745	745	hour; [or]
746	746	(B) [certified to] the United States
747	747	Environmental Protection Agency's light-duty Bin 5 standard or
748	748	better; or
749	749	(C) meet or exceed the United States
750	750	Environmental Protection Agency's chassis-certified heavy-duty
751	751	vehicle emission standard of:
752	752	(i) 0.2 grams of nitrogen oxides per mile
753	753	for vehicles with a gross vehicle weight rating of 8,501 to 10,000
754	754	pounds; or
755	755	(ii) 0.4 grams of nitrogen oxides per mile
756	756	for vehicles with a gross vehicle weight rating of 10,001 to 14,000
757	757	pounds;
758	758	(2) if a federal standard for the calculation of
759	759	emissions reductions exists, provide a method to calculate the
760	760	reduction in emissions of nitrogen oxides, volatile organic
761	761	compounds, carbon monoxide, particulate matter, and sulfur
762	762	compounds for each replacement or repowering;
763	763	(3) assign a standardized grant [rebate] amount for
764	764	each qualifying vehicle or engine repower under Section 394.007;
765	765	(4) allow for processing applications [rebates] on an
766	766	ongoing first-come, first-served basis;
767	767	(5) [provide for contracts between the commission and
768	768	participating dealers under Section 394.009;
769	769	[(6) allow grant recipients to assign their grant
770	770	funds to participating dealers to offset the purchase or lease
771	771	price;
772	772	[(7)] require grant applicants to identify natural gas
773	773	fueling stations that are available to fuel the qualifying vehicle
774	774	in the area of its use;
775	775	(6) [(8)] provide for payment not later than the 30th
776	776	day after the date the request for reimbursement for an approved
777	777	grant is received;
778	778	(7) [(9)] provide for application submission and
779	779	application status checks using procedures established by the
780	780	commission, which may include application submission and status
781	781	checks to be made over the Internet; and
782	782	(8) [(10)] consolidate, simplify, and reduce the
783	783	administrative work for applicants and the commission associated
784	784	with grant application, contracting, reimbursement, and reporting
785	785	requirements.
786	786	SECTION 37. Section 394.012, Health and Safety Code, is
787	787	amended to read as follows:
788	788	Sec. 394.012. EXPIRATION. This chapter expires August 31,
789	789	2023 [2017].
790	790	SECTION 38. Sections 386.161(b), 386.252(e-1), 394.009,
791	791	394.010, and 394.011, Health and Safety Code, are repealed.
792	792	SECTION 39. The changes in law made by this Act apply only
793	793	to a Texas emissions reduction plan grant awarded on or after the
794	794	effective date of this Act. A grant awarded before the effective
795	795	date of this Act is governed by the law in effect on the date the
796	796	award was made, and the former law is continued in effect for that
797	797	purpose.
798	798	SECTION 40. This Act takes effect August 31, 2015.